Proposal for a COUNCIL REGULATION (EEC) on special arrangements for imports of maize into Portugal
Date: 1993-11-05
Institutions: European Commission
Subjects: Portugal, agricultural levy, domestic consumption, import, maize, reduced price

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0M(93) 539 final 

Brussels, 5 November  1993 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

on special arrangements for imports of maize into Portugal 

(presented  by  the Commission) 

fK.r  * 

I* 

w*  ' 

j! > Î ^ E ^ ? ^ ^ * *:*W ST ! TW* 

ïs;,§fc;. 

)L 

EXPLANATORY  MEMORANDUM 

Point  8 of the Memorandum of understanding  on certain oil seeds between the 
European Economic Community  and the United States of America within the 
framework of the GATT approved by Council Decision  93/355/EEC of 8 June 
1993<1),  lays down that the Community  shall grant a reduced-tariff quota 
for the import of 500 000 tonnes of maize into Portugal beginning  in the 
1993/94 marketing year.  The reduced tariff  shall be fixed at a rate that 
ensures that the quota  is filled. 

To allow the Community's undertaking  to be fulfilled, specific  arrangements 
for importing maize  into Portugal must be introduced.  This draft proposal 
for a Council Regulation provides for the introduction of such 
arrangements, retroactive to 1 July  1993.  As the understanding was 
concluded pursuant to Article  113 of the Treaty, the arrangements  fall 
within the exclusive competence of the Community. 

Included among the import arrangements are a reduced rate of import levy 
and the opening of tendering procedures for reducing the import levy.  The 
option of purchasing on the world market by the Portuguese  intervention 
organization  is also provided  for in this draft regulation. 

(1) OJ No L  147, 18.6.1993, p. 25. 

3 

Proposal for a 

Council Regulation  (EEC) No 

of 

1993 

on special arrangements for imports of maize into Portugal 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having regard to the Treaty establishing  the European Economic  Community, 
and in particular Article  113 thereof, 

Having regard to the proposal from the Commission, 

Whereas, pursuant to Council Decision 93/355/EEC of  8 June  1993<1) 
concerning the conclusion of a Memorandum of understanding  on certain oil 
seeds between the European Economic Community  and the United States of 
America within the framework of the GATT, the community  has undertaken, 
beginning  in the 1993/94 marketing year, to open a reduced-tariff quota for 
imports into Portugal of 500 000 tonnes of maize; whereas this understanding 
falls within the exclusive competence of the Community; 

^ 

Whereas, to ensure that the understanding between the European Economic 
Community and the United states of America  is carried out, provision has 
been made to reduce the tariff to a level allowing the quota to be fully 
used; whereas this reduction may be envisaged by applying  a reduction of the 
import levy; whereas, however, the imports into Portugal at preferential 
terms may create difficulties  for the Community market, particularly  in view 
of Council Decision  87/224/EEc(^) concerning the agreement between the 
European Economic Community  and the United States of America concerning the 
conclusion of the negotiations under Article XXIV  (6) of the General 
Agreement on Tariffs and Trade  (GATT); whereas to overcome this difficulty, 
the possibility  of restricting the use or processing  of these quantities of 
maize  in Portugal and the possibility of applying a countervailing  duty to 
the processed products exported either to third countries or to the rest of 
the Community  should be provided for; 

(1) OJ No L  147, 18.6.1993, p. 25. 
(2) OJ No L 98, 10.4.1987, p.l. 

Whereas the accumulation of benefits provided  for, on the one hand, as part 
of the arrangements established by Council Regulation  (EEC) No 715/90 of 5 
March  1990(3), as last amended by Commission Regulation  (EEC) No 444/92(4) 
and applicable when importing  into the Community sorghum wheat and maize 
originating  in the African, Caribbean and Pacific  States  (ACP States) or the 
overseas territories, or on the other hand pursuant to this Regulation is 
such as to create disturbances on the Portuguese cereals market;  whereas 
this difficulty  can be overcome by fixing a countervailing  duty  specific to 
the levy applying to maize imported pursuant to this Regulation; 

; 

Whereas provisions are required to cover the operations  arising  from this 
Regulation  in accordance with the mechanisms  laid down by council Regulation 
(EEC) No 729/70 of 21 April  1970 on the financing of the common  agricultural 
policy<5), as last amended by Regulation  (EEC) No 204 8/88<6), and by 
Council Regulation  (EEC) No  1883/78 of 2 August  1978 laying down general 
rules for the financing of interventions by the European Agricultural 
Guidance and Guarantee Fund, Guarantee  Section^7),  as last amended by 
Regulation  (EEC) No 787/89<8>, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Imports of a maximum quantity of 500 000 tonnes of maize from third 
countries  for free circulation  in Portugal shall be undertaken  in accordance 
with the conditions  laid down in the following Articles. 

Article 2 

1. Without prejudice to Article  3, in the case of imports of maize into 
Portugal and within the quantitative  limits set down in Article  1, a 
reduction shall be applied to the levy fixed in accordance with Article 
10 of Regulation  (EEC) No 1766/92. 

(3) OJ No L 84, 30.3.1990, p. 85. 
(4) OJ No L 52, 27.2.1992, p. 7. 
(5) OJ No L 94, 28.4.1970, p. 3. 
(6) OJ no L  185, 15.7.1988, p. 1. 
(7) OJ No L 216, 5.8.1978, p. 1. 
(8) OJ No L  85, 30.3.1989, p. 1. 

2. The amount of the reduction shall be fixed in accordance with the 

procedure  laid down in Article 23 of Regulation  (EEC) No  1766/92 at a 
level enabling disturbances on the Portuguese market to be avoided.  The 
reduction may also be fixed by a tendering procedure. 

The reduction may be differentiated for imports of maize into Portugal 
under Regulation  (EEC) No 715/90. 

3. The reduction shall be applied to imports of maize  into Portugal on the 

basis of a licence valid only in that Member state. 

Article 3 

1. With a view to effecting  the imports referred to in Article  1, it may be 
decided, under the procedure  laid down  in Article  23 of Regulation  (EEC) 
No  1766/92, that the Portuguese  intervention  agency  shall purchase on the 
world market quantities of maize to be determined  and shall place them in 
Portugal under the customs warehousing procedure as provided  for in 
Council Regulation  (EEC) No 2503/88 on customs warehouses(9) and 
Regulation  (EEC) No 2561/90(1°) laying down provisions  for the 
implementation thereof. 

2. Quantities purchased pursuant to paragraph  1 shall be put up for-'sale on 
the Portuguese domestic market  in accordance with the procedure  laid down 
in Article 23 of Regulation  (EEC) No  1766/92, on terms that enable market 
disturbances to be avoided. 

3. When the maize is placed  in free circulation, an agricultural  levy shall 

be levied equal to the average of the levies applicable  in Portugal and 
fixed for the cereal concerned during the first twenty-five days of the 
month preceding the date of acceptance of the declaration of entry  into 
free circulation, minus the difference between the threshold price and 
the intervention price for the same month. 

Entry  into free circulation  shall be effected by the Portuguese 
intervention agency. 

When the purchasers of the goods pay the intervention  agency, the selling 
price minus the levy shall correspond to revenue from sales within the 
meaning of Annex I of Regulation  (EEC) No 3492/9 0 (1 1). 

4. The purchase provided  for in paragraph  1 shall rank as an intervention to 

stabilize the agricultural markets within the meaning of Article  1(2)(b) 
of Regulation  (EEC) Ho  729/70. 

(9)  OJ No L 225, 15.8.1988, p.l. 
(10) OJ No L 246, 10.9.1990, p.l. 
(11) OJ No L 337, 4.12.1990, p. 3. 

5. The payments made by the intervention agency  for the purchases provided 
for in paragraph  1 shall be borne by the community as they arise and 
shall be treated  in the same way as the expenditure referred to in 
Article 2 of Regulation  (EEC) No  1883/78.  The Portuguese  intervention 
agency  shall record the value of the goods purchased  at a price of "zero" 
in the account referred to in Article  4 of Regulation  (EEC) No 1883/78. 

Article 4 

At a frequency to be determined, the Commission  shall record the quantities 
of maize imported  into Portugal from third countries. 

( 

For this purpose the Portuguese authorities  shall regularly  supply the 
Commission with all necessary  information. 

Article 5 

The imports referred to in Article  1 shall be carried out during each 
marketing year. 

Article 6 

Where the markets for maize or products derived therefrom are distdÇbed, a 
countervailing  duty may be introduced  in accordance with the procedure laid 
down in Article 23 of Regulation  (EEC) No  1766/92 for exports of the 
products  in question from Portugal or for their consignment  to other Member 
States. 

Article 7 

The following  shall be adopted  in accordance with the procedure  laid down in 
Article  23 of Regulation  (EEC) No 1766/92: 

the measures needed to ensure, where appropriate, that the cereals for 
which the levy has been reduced  are actually processed or used in 
Portugal; such measures may, apart from the lodging of a security, 
provide in particular either for a restriction on the use of the maize 
imported  into Portugal pursuant to this Regulation or the application of 
a countervailing  duty where it is noted that the Community market in 
maize has been disturbed as a result of the consignment of  significant 
quantities of maize from Portugal to other Member States; 

all other detailed rules for implementing  this Regulation, and in 
particular those relating to the issue of import  licences; such rules may 
stipulate that the licences may be issued only  in Portugal, after 
Commission endorsement. 

Article 8 

This Regulation  shall enter  into force on the day following  its publication 
in the Official Journal of the European Communities. 

This Regulation  shall be binding  in its entirety  and directly  applicable in 
all Member States. 

Done at Brussels 

For the Council 

* 

Financial  Statement 

( F F / 9 3 / 0 3 5) 

D a te  : 

H / 1 0 / 1 9 93 

1.  BUDGET  HEADING  :  B 2 - 5 1 60 

E x p e n d i t u re  1003 
Income 

Î004 

APPROPRIATIONS : 2U  (LR 94) 

1023.4 

2. TITLE : 

Proposal  for a Council  Regulation on special  arrangements  for  imports of maize  into Portugal 

3. LEGAL  BASIS :  EEC Treaty, Article 43  in particular 

4. AIMS 

Special  arrangements  for  the  import  into Portugal of 500 000 tonnes of maize at a reduced 
tariff as provided  for in the Memorandum  of understanding concluded  between  the  Community 
and  the United  States of America 

5. FINANCIAL  IMPLICATIONS 

5.0 EXPENDITURE 

- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 

5.1  REVENUE 

- OWN  RESOURCES OF THE EC 
(LEVIES/CUSTOMS  DUTIES) 

I  - NATIONAL 

5.0.1  ESTIMATED  EXPENDITURE 
5.1.1  ESTIMATED  REVENUE 

5.2 METHOD OF CALCULATION 

See Annex 

PERIOD OF 12 MONTHS  CURRENT  FINANCIAL  YEAR 

(  ECU m ) 

FOLLOWING  FINANCIAL  YEAR 
(  ECU m  ) 

39.8 

39.8 

1996 

16.3 
16.3 

1997 

8.4 
8.4 

1998 

8.4 
8.4 

32.6 

32.6 

1999 

8.4 
8.4 

6.0  CAN  THE PROJECT BE FINANCED  FROM APPROPRIATIONS ENTERED IN THE RELEVANT  CHAPTER OF THE CURRENT  BUDGET ? 

6.1  CAN  THE PROJECT BE FINANCED BY TRANSFER  BETWEEN  CHAPTERS OF THE CURRENT  BUDGET ? 

6.2  WILL A SUPPLEMENTARY  BUDGET BE NECESSARY ? 

6.3  WILL  FUTURE  BUDGET APPROPRIATIONS BE NECESSARY ? 

COMMENTS 

This measure can be financed  from within the appropriations provided for  in the budget. 

YES 

YES 

NO 

YES 

The importation of 500 000 tonnes of reduced-tariff maize will result in the 
export of an additional  500 000 tonnes of fodder cereals. 

It is presumed that the amount of the levy will be equal to the amount of 
the export refund. 

kVMaW 

1994 

1995 

1996 

1997 
et seq. 

Levy  refunds 
ECU(A)/t 

66 

54 

28 

14 

Quantity 
million tonnes 

0.5 

0.5 

0.5 

0.5 

Dual rate 

1.207 

1.207 

1.207 

1.207 

Expenditure and 
own resources 
million ECU 

39.8 

32.6 

16.9 

8.4 

3 

ISSN 0254-1475 

COM(93) 539 final 

DOCUMENTS 

EN 

il  03 

Catalogue number : CB-CO-93-576-EN-C 

ISBN 92-77-60629-0 

Office for Official  Publications of the European Communities 
L-2985 Luxembourg